French banks boost their deposit base by €130bn

FRENCH lenders brought in €130bn (£108bn) more in customer deposits last year, according to ratings agency Fitch, shoring up their ability to weather difficult European funding conditions.

The agency said the new cash had come “partly at the expense of European money market funds”, with lenders offering attractive introductory interest rates to lure deposits away.

Fitch said it “expects this trend to continue”, unless savers are targeted by life insurance providers offering better returns. Deposits are cheaper funding for banks than debt.